Impending

Recession?

As of 9-21-2024

Gold $2,621

Copper $4.28

Gold to Copper Ratio is 613 to1 (rounded)

We frequently talk about the gold-silver ratio, but often the gold-copper ratio can be a more telling indicator when it comes to assessing the health of the economy. “Dr. Copper” is known for its ability to signal when the economy is ‘unwell’. As you will read below, the readings on the doctor’s chart are strong and this, combined with the gold price, tells us something many of us have been saying for years: we are about to head into some very tough economic times, indeed.

 

The gold-to-copper ratio is pointing to slower economic growth and increased safe-haven demand.

The gold-to-copper ratio is an account of how many ounces of copper it would take to purchase one ounce of gold and history shows that the past peaks of this ratio coincides with the crisis. Copper is often referred to as “Dr. Copper” for its uncanny ability to predict economic health. Copper is an industrial metal used in building and performs well during economic expansion. 

 

Gold, on the other hand, is a safe-haven asset, which investors turn to in times of financial and geopolitical crisis, which makes it an indicator of fear in the market.